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Auto-shredder parts spared US tariffs

Components bought from China to be used in end-of-life vehicle shredders in the US have been spared a proposed 25% tariff. These ‘wear parts’ had initially been included in American tariffs imposed on 6 July 2018 as part of the trade war between the US and China.

An announcement from the US Trade Representative (USTR) that the tariff waiver will apply for one year, and that auto-shredder operators importing directly from China can apply for the full refund of all duties paid to date, was welcomed by the Institute of Scrap Recycling Industries.

‘USTR’s decision to exclude wear parts is not only a major relief for America’s recycling industry but also good news to the nation’s steel and aluminium producers that rely heavily on scrap materials for the manufacture of new products,’ says Robin Wiener, president of ISRI.

ISRI’s Robin Wiener

‘Using scrap materials saves manufacturers money and reduces energy costs – which is a win-win for recyclers and the nation,’ she adds. ‘While the waiver is in place for just one year, the retroactive application of the policy will help the industry save tens of millions of dollars in tariffs.’

Wiener points out that ISRI ‘remains hopeful’ that negotiations between the US and China will yield additional tariff relief on scrap materials traded between the two countries.

Operators of automobile shredders in the US, which process 365 000 tonnes of material daily, have sourced as much as 85% of the required wear parts from China. There is one domestic supplier but its the operation is too small to meet the needs of the more than 300 auto-shredder machines.

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